Asian Markets Tumble on Lehman Woes

CNBC.com

Monday, 15 Sep 2008 | 5:36 AM ETCNBC.com

SHARES

Asian markets -- the few of them that were opened today -- fell sharply as U.S. investment bank Lehman Brothers filed for bankruptcy, dragging down financials. Moves were likely exaggerated as trading activity is limited by market holidays across the region, including in Japan, Hong Kong, China and South Korea. These markets will reopen Tuesday.

In related news, Merrill Lynch agreed to be acquired by Bank of America for $29 a share, or roughly $50 billion, after being pressured into a deal by federal regulators.

Fears of Lehman's bankruptcy sent shock waves through the market, and saw the U.S. dollar post its largest one-day fall against the euro in six months. Crude oil futures fell below $100 as Hurricane Ike caused less damage than feared to the U.S. oil facilities in the Gulf of Mexico.

Australian shares finished 1.7 percent lower as gains in miners stemmed the market's fall. The investment banks were the worst hit, with Macquarie Group down 10 percent and Babcock & Brown down 16 percent. Mining companies, led by BHP Billiton and Newcrest Mining, helped stem the market's declines after industrial metals prices bounced on Friday and investors poured into gold as a safe haven.